Coinbase’s Chief Legal Officer Optimistic About Spot Bitcoin ETF Approval
In a recent interview with CNBC’s Arjun Kharpal, Coinbase’s Chief Legal Officer (CLO) Paul Grewal expressed optimism about the approval of Bitcoin Exchange Traded Fund (ETF) applications by the United States Securities and Exchange Commission (SEC). Grewal believes that the SEC should fulfill its responsibilities and approve a spot Bitcoin ETF based on the law.
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Grewal stated during the interview.
Grewal further emphasized his belief in the early success of approval, noting that the firms proposing well-structured ETFs are major players in the financial service industry.
“I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services. So that, I think, suggests that we will see progress there in short order,” Grewal added.
While Grewal did not provide a specific timeframe for the approval, he remains confident that the SEC is likely to approve a Bitcoin ETF in the near future due to recent developments.
Grewal also referenced a recent court setback for the SEC, where a judge from the US Court of Appeals ruled that the SEC had no grounds to deny Grayscale’s approval to convert its Grayscale Bitcoin (BTC) into a spot Bitcoin ETF. He called the SEC’s decision arbitrary and capricious.
“I think that, after the U.S. Court of Appeals made it clear that the SEC could not reject these applications on an arbitrary or capricious basis, we’re going to see the commission fulfill its responsibilities. I’m quite confident of that,” Grewal stated.
The SEC’s failure to file an appeal on the ruling further indicates a potential approval of a spot Bitcoin ETF within the given timeframe mandated by the court.
If approved, a spot BTC ETF could lead to a major rally in Bitcoin’s price. It would provide investors with an opportunity to invest in Bitcoin without directly purchasing the digital asset from an exchange.
Coinbase, one of the leading cryptocurrency exchanges, stands to benefit significantly from the approval of a Bitcoin ETF. The exchange’s common stock is held in portfolios designed to give investors exposure to cryptocurrencies.
JPMorgan Bullish on Spot Bitcoin ETF Approval
Analysts from JPMorgan also share optimism about the approval of a Bitcoin ETF. They believe that the ETF product could be available to the public by this Christmas. Recent developments following the approval of a spot Bitcoin ETF have increased the likelihood of approval before January 10, 2024, according to the financial giant.
Bloomberg analysts also support the idea of a Bitcoin ETF approval, with a 90% chance of approval in the coming year.
These positive sentiments from industry experts indicate growing confidence in the potential approval of a spot Bitcoin ETF, which could have significant implications for BTC’s price and the broader cryptocurrency market.
